Global Economy Takeoff 2018 🚀 | Summary and Q&A

TL;DR

Goldman Sachs predicts a strong global economy in 2018, following a year of surprising growth in 2017.

Key Insights

• ↩️ 2017 has been a remarkable year for the stock market, with the Dow, S&P 500, and Nasdaq exceeding average annual returns.
• 💗 Analysts at Goldman Sachs predict that the global economy will continue to grow in 2018, with factors like strong growth momentum and accommodative monetary policy supporting this growth.
• 👀 The passage of US tax reform and trade policy risks are important factors to watch in 2018.

Transcript

Read and summarize the transcript of this video on Glasp Reader (beta).

Questions & Answers

Q: What does Goldman Sachs predict about economic growth in 2018?

Goldman Sachs expects the global economy to grow by 4% in 2018, citing strong growth momentum, easing financial conditions, and accommodative global monetary policy as contributing factors.

Q: How has the economy performed in 2017?

2017 has been a remarkable year for the markets, with the Dow up over 18%, the S&P 500 up over 15%, and the Nasdaq up an astounding 26%.

Q: What risks are mentioned in Goldman Sachs's report?

The report highlights two policy risks: the passage of US tax reform and US trade policy. Goldman Sachs believes there is an 80% chance that tax reform will be passed in early 2018.

Q: Will the US tax reform impact economic growth in 2018?

While the tax reform may not have an immediate impact on the economy in 2018, it is expected to contribute to economic growth in the long term, potentially leading to a 3% or higher growth rate.

Summary & Key Takeaways

• Analysts at Goldman Sachs predict that 2018 will be a phenomenal year for economic growth worldwide, building on the unexpectedly strong growth seen in 2017.

• The global economy has shown signs of improvement, with Germany and Japan experiencing strong growth in the third quarter, and the US economy growing steadily at 3%.

• Goldman Sachs attributes the expected growth to factors such as strong growth momentum, easing financial conditions, accommodative global monetary policy, and the possibility of fiscal stimulus in the US.